Publicação
Equity research - Strabag SE
| Resumo: | STRABAG SE is one of the largest construction companies in Europe, and the largest in Germany and Austria. The Company is capable of building anything from simple residential buildings to complex infrastructure projects and everything in between. While this is an impressive commendation, it makes it exponentially difficult to value properly due to many unpredictable unknown variables. The report conducted calls for a STRONG BUY recommendation for STRABAG SE stock with a price target of €47.0 per share at 2023YE as of May 2023. This represents a 22.9% return for the holding period and 44.0% on an annualized basis. The main drivers of the investment are: i) the expected growth of construction in Europe, ii) STRABAG’s positioning in the industry, and iii) financial strength of the Company. Most of these factors remain constant for long periods of time and that is what makes this a stable recommendation with a MEDIUM LOW risk investment. The risk of the investment is MEDIUM LOW due to a multitude of factors. Those are: the financial stability of STRABAG, diversified business activities, low leverage, a strong market share and a solidified position in the industry. The risks that are posed to the Company are either direct competition or large, black swan events in the market and, most notably, the illiquidity of its stock due to large institutional ownership. In any case, we live in uncertain times with many unknowns so the recommendation will get adjusted according to new and relevant information. |
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| Autores principais: | Dragojevic, Daniel |
| Assunto: | STRABAG SE Construction and Infrastructure Valuation Equity Research |
| Ano: | 2023 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | STRABAG SE is one of the largest construction companies in Europe, and the largest in Germany and Austria. The Company is capable of building anything from simple residential buildings to complex infrastructure projects and everything in between. While this is an impressive commendation, it makes it exponentially difficult to value properly due to many unpredictable unknown variables. The report conducted calls for a STRONG BUY recommendation for STRABAG SE stock with a price target of €47.0 per share at 2023YE as of May 2023. This represents a 22.9% return for the holding period and 44.0% on an annualized basis. The main drivers of the investment are: i) the expected growth of construction in Europe, ii) STRABAG’s positioning in the industry, and iii) financial strength of the Company. Most of these factors remain constant for long periods of time and that is what makes this a stable recommendation with a MEDIUM LOW risk investment. The risk of the investment is MEDIUM LOW due to a multitude of factors. Those are: the financial stability of STRABAG, diversified business activities, low leverage, a strong market share and a solidified position in the industry. The risks that are posed to the Company are either direct competition or large, black swan events in the market and, most notably, the illiquidity of its stock due to large institutional ownership. In any case, we live in uncertain times with many unknowns so the recommendation will get adjusted according to new and relevant information. |
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